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Pom Assignment 2 6606
Pom Assignment 2 6606
S.ID: 6606
Assignment # 2
Jan 8 July 39
Feb 15 Aug 24
Mar 31 Sept 16
April 59 Oct 15
May 97 Nov 28
June 60 Dec 47
Total 439
Average demand per month = 439/12 = 36.58 bicycles. The standard deviation of the
2∗439∗65
Q¿ =√
12.24
= 68 units of bicycles.
A plot of the nature of the demand clearly shows that it is not a level demand over the planning
horizon. An EOQ for the entire year, therefore, may not be appropriate. The students should try
to segment the planning horizon in a way so that the demand is more evenly distributed and
come up with an inventory plan for each of these segments.